Amazon India seller Cloud Tail Faces Rs.56 Cr Tax Demand: Report

Cloud tail one of the largest sellers on amazon India, is facing a tax demand of over Rs.56 crores, according to a report by The Guardian. Cloud tail is a joint venture between Infernos founder NR NARAYANA MURTHY catamaran ventures and amazon. The British paper was able to ascertain Cloud tail tax dispute through its latest available annual report.

Large e-commerce companies and their sellers typically have disputes over tax demands. E-tailless and online merchants usually contest some claims by the tax department. A spokesperson for Cloud tail told ET that it has disputed the service tax claim and the matter is before the adjudicating authorities. “Cloud tail has been disclosing this as a contingent liability in its annual report since 2019 as per Indian account standards. Since this matter is sub juice (before the courts), we are unable to comment any further, Cloud tail reiterates that it is in full compliance with the laws of India”, the spokesperson added. Amazon held 49% stake in prion Business services, which houses cloud tail, but had to dilute its stake to 24% following changes in FDI in e-commerce in 2019.

For FY2020, Cloud tail reported revenue of Rs.11,413 crore, up 28% on year. Its net profit jumped 130% to Rs.68 crores during the same period. Last year, the excise and taxation department had issued an advisory warning firms to not changing the same in their GST registration. The trigger for this advisory was cloud tail. The department said then that it had conduction a routine physical verification premises and found it to be non-existent. S-ET

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